Orbsat Corp Reports Strong Revenue in Third Quarter of 2019
Quarterly Growth Driven by Strong E-commerce Sales in United States and Europe
AVENTURA, FL / ACCESSWIRE / November 14, 2019 / Orbsat Corp (OTCQB:OSAT) ("Orbsat" or the "Company"), a global provider of communication solutions for connectivity to the world through next-generation satellite technology, today reported financial results for the third quarter ended September 30, 2019.
- Third quarter 2019 revenues increased to approximately $1,746,525, representing an approximately 26% increase over the third quarter of 2018, driven by strong global demand for satellite enabled tracking and emergency response systems, voice, data and IoT solutions, and recurring revenue airtime services
- Increased inventory levels aided growth in global e-commerce marketplace sales, highlighted by a 76% increase in the United States compared to the same quarter in 2018.
- Despite significant currency weaknesses affecting UK and EU sales, gross profit margins for the third quarter of 2019 increased to 21.8% as compared to 17.8% reported in the quarter ended September 30, 2018.
David Phipps, Chief Executive Officer of Orbsat Corp, said, "We are pleased with the robust performance of the business in the third quarter, generating significant revenue and increased gross profit, the result of a globally diverse customer base and growth in our key United States and European markets. Through recent partnerships and distribution agreements, and new Middle East and Asian e-commerce storefronts we expect to launch later this year, we will continue executing on our strategic plan, positioning Orbsat to further capitalize on global demand for advanced satellite enabled voice, data and tracking solutions."
Third Quarter Financial Highlights
Revenue for the three months ended September 30, 2019 was approximately $1,746,525 as compared to approximately $1,386,927 for the three months ended September 30, 2018, an increase of 25.9%. Total sales for Global Telesat Communications Ltd. increased by 16.3% to $1,103,619 for the three months ended September 30, 2019 despite continued currency weakness in the U.K. as compared to $949,310 for the three months ended September 30, 2018. Total sales for Orbital Satcom Corp. increased 46.9% to $642,906 for the three months ended September 30, 2019 as compared to $437,617 for the three months ended September 30, 2018
Gross profit margins during the three months ended September 30, 2019 were 21.8% as compared to 17.8% for the comparable period in the prior year.
Total operating expenses for the three months ended September 30, 2019 were $583,036, an increase of $53,649 or 10.1%, from total operating expenses for the three months ended September 30, 2018 of $529,387. Expenses for the three months ended September 30, 2019 were impacted by increased interest and restructuring costs totaling approximately $162,336.
Net loss before income tax was $300,959 for the three months ended September 30, 2019, as compared to a net loss of $324,387 for the three months ended September 30, 2018. The reduced loss in the most recent three-month period reflects an increase in gross profit offsetting increased interest and restructuring costs as well as a lower provision for income taxes.
About Orbsat Corp
Orbsat provides services and solutions to fulfill the rapidly growing global demand for satellite-based voice, high-speed data, tracking and IoT connectivity services. Building upon its long-term experience providing government, commercial, military and individual consumers with Mobile Satellite Services, Orbsat is positioned to capitalize on the significant opportunities being created by global investments in new and upgraded satellite networks. Orbsat's U.S. and European based subsidiaries, Orbital Satcom and Global Telesat Communications, have provided global satellite connectivity solutions to more than 35,000 customers located in over 160 countries across the world.
Certain statements in this release constitute forward-looking statements. These statements include the capabilities and success of the Company's business and any of its products, services or solutions. The words "believe," "forecast," "project," "intend," "expect," "plan," "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors, including the Company's ability to launch additional storefronts in various geographic locations, any of which could cause the Company to not achieve some or all of its goals or the Company's previously reported actual results, performance (finance or operating) to change or differ from future results, the Company's ability to capitalize on its partnerships as well as other similar arrangements, performance (financing and operating) or achievements, including those expressed or implied by such forward-looking statements. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (the "SEC"), copies of which may be obtained from the SEC's website at www.sec.gov. The Company assumes no, and hereby disclaims any, obligation to update the forward-looking statements contained in this press release.
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Released November 14, 2019